Buzz Bits: Dow, Nasdaq Go Green
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Bell Buzz - Todd Harrison - 3:39 PM
- If your Buzz blinks, hit F5 and yell "ARMAGEDDON!" OK, just hit F5.
- I woulda thunk they pinned Goldman to $205 but, low and behold, it's looking like $210. If they try to run it towards $215--and near our aforementioned $214 resistance--I'm gonna full circle back into some puts.
- Minyans have been weighing in on the "path of maximum frustration." Muses include "take out the highs, suck folks in (for the year-end rally) and wax 'em with a false breakout" and "crude comes in hard and equities follow suit."
- Has anyone seen Kamal (our tech maven) and Ponch from CHiPs in the same room at the same time?
- Random Thought: I've been asking alotta bulls "If the Dow goes to 15,200 (10%) while the dollar drops to DXY 63 (20%), is it still considered a bull market?" To a bovine, they said "No." The natural question is therefore begged, how do they resolve this dichotomy since 2002?
- Work to live--don't live to work--and have a mindful weekend. This business will suck the life out of you if you let it. Don't let it--take control of your happiness--and let's rock and roll into Q4.
- May peace be with you.
Minyan Mailbag: Harmonic and others like it... - Sean Udall - 1:44 PM
It looks like a better risk/reward exists in C-COR Inc. (CCBL) as opposed to Harmonic (HLIT).
That may or may not be true. The one thing I do know is that if you really like CCBL (a company I know very well), and embrace the thesis behind that stock -- then you should really like both companies. I would also throw Arris Group (ARRS) into the mix as well.
I certainly like all these stocks, however, I prefer the TA action in HLIT currently. I would be surprised in fact if I don't own CCBL again at some point. I'm close to doing something on ARRS and just waiting.
Currently, the way CCBL's chart is setting up doesn't provide me with an entry that fits my criteria, so it's on the watch list. From a thematic basis I would agree that CCBL has a solid chance at performing well -- along with HLIT & ARRS.
Good luck with the trade.
Position in HLIT.
The Boo of Bonds is Here - Bennet Sedacca - 11:10 AM
Welcome back my friends to the show that never ends
We're so glad you could attend
Come inside! Come inside! There behind a glass is a real blade of grass
Be careful as you pass. Move along! Move along!
-Karn Evil 9 (Emerson, Lake and Palmer)
Don't look now, but the bear steepener is on. And it is on big. How big?
Well in the chart at the bottom, you will see the spread between 3 month bills and 10's. The spread now? 92 basis points. Yes, this is much steeper than the inversion we were used to.
Previous steepeners go to 400 basis points over the past 15 years. Considering all the global dislocations and the dollar, and a Fed that is insistent on blowing bubbles, 400 may be be a bit conservative.
Note the lyrics above. Welcome to the bear steepener.
Click here to enlarge.
Solid Gold? - Lance Lewis - 10:56 AM
Many of you saw Merrill Lynch's (MER) downgrade of some gold miners, as Dr. J noted. We also decided to ask our gold specialist, Professor Lewis. Here is his reply:
Shares have had a big move and MER's downgrade on Barrick Gold (ABX) and Agnico-Eagle Mines (AEM), coming on the morning of quarterly option expiration, has prolly hit the levered guys so you are getting a pullback. The Dollar is also bouncing a little... pretty noisy out there. Gold and miners are probably due for some sort of rest but then again if there's a currency event over the weekend, that rest won't last long.
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